Introduction

Entrepreneurs are among the most creative people in the business world. Embued with a set of unique personal characteristics they are individuals who organize, manage, and assume the risks of starting a new business or taking over an existing business. They are innovators who devise new products, technologies or processes which were previously thought of as infeasible. Always looking for new opportunities, entrepreneurs are good at adapting to change, developing their personal strengths, and overcoming their weaknesses in order to accomplish their goals.

Entrepreneurs also have a powerful impact on society. They create jobs, produce new goods and services, contribute to the community's tax base and create wealth. In so doing they play a significant role in sustaining and /or revitalizing a community's economy.

This lesson defines what an entrepreneur is, examines the characteristics of entrepreneurs, and provides students with the opportunity to evaluate their own entrepreneurial potential.

Topics

• Entrepreneurship
• Personal characteristics of entrepreneurs
• Pros and cons of starting a business
• Routes to Entrepreneurship

Objectives

• To define entrepreneurship
• To examine the characteristics of entrepreneurs
• To understand the pros and cons of owning and operating a small business
• To assess student entrepreneurial potential

Lesson Description

In this lesson students explore what it means to be an entrepreneur and examine the benefits and risks of engaging in entrepreneurial activities. They discuss the personal characteristics of entrepreneurs and then assess their own potential for starting a small entrepreneurial enterprise. Then they learn different ways of starting a small business.

Materials

• Activity 2-A: Self Assessment Questionnaire
• Activity 2-B: Case studies of entrepreneurs
• Activity 2-C: Self-Portrait of an Entrepreneur
• Visual 2-1: Definition of an Entrepreneur
• Visual 2-2: Most Important Traits for an Entrepreneur to Develop
• Visual 2-3: Pros and Cons of Being an Entrepreneur
• Visual 2-4: Evaluating the Self-Assessment Questionnaire

Procedure

1. Tell the class that this lesson explores the concept of entrepreneurship and how students can assess their potential with regard to owning and operating an entrepreneurial enterprise.

2. Have students take the Self-Assessment Questionnaire (Activity 2-1) developed by the United States Small Business Administration. This questionnaire helps them determine whether they presently possess the skills, personal characteristics and aptitudes of an entrepreneur. When they have completed the quiz have them save it for further discussion and analysis at the end of the class period.

3. Break the class up into groups of four or five. Ask each group to choose one of he entrepreneurs listed in Activity 2-B: Case Studies of Entrepreneurs. Then each group should list those characteristics they feel enabled that entrepreneur to achieve success they have. Each group should develop a skit which indicates the story of the entrepreneur and several of the most obvious personal characteristics that yielded success. Ask one person from each group to write the characteristics on the board to develop a class list.

4. Using Visuals 2-1: Definition of an Entrepreneur and 2-2: Most Important Traits for an Entrepreneur to Develop, compare the description and characteristics of an entrepreneur with those the student groups compiled. It is important to point out that no one possesses ALL of these characteristics and that many are skills that can be developed. Visual 2-2: Most Important Traits for an Entrepreneur to Develop, illustrates those traits that are considered most important for an entrepreneur to develop (Mariotti, 1996, p.68):
   • Adaptability: The ability to cope with new situations and find creative solutions to problems
   • Competitiveness: The willingness to compete with and test oneself against others
   • Confidence: The belief that you can do what you set out to do
   • Discipline: The ability to stay focused and stick to a schedule and deadlines
   • Drive: The desire to work hard to accomplish one's goals
   • Honesty: The commitment to tell the truth and deal with people fairly
   • Organization: The ability to structure one s life and tasks and information in order
   • Perseverance: The refusal to quit; the willingness to keep goals in sight and work toward them despite obstacles
   • Persuasiveness: The knack for convincing people to see your point of view and to get them interested in your ideas
   • Risk taking: The courage to expose oneself to possible losses
   • Understanding: The ability to listen to and empathize with other people
   • Vision: The ability to see the end result of your goals while working to achieve them

5. Discuss what students feel are the pros and cons of starting a business and list them on the board. Using Visual 2-3: Pros and Cons of Being an Entrepreneur, talk about the following:

   PROS:

   • Profit: The opportunity to accumulate wealth
   • Independence: The opportunity to work for yourself, make your own decisions and be your own boss
   • Satisfaction: Bringing pleasure or contentment
   • Self-Esteem: A strong feeling of accomplishment
   • Satisfying Life Style: A contentment that their business provides a high degree of personal satisfaction and fun
   • Contributions to the Community: Satisfaction that they are providing jobs and opportunities for others to start their own businesses

     CONS:

   • Business Failure: Possibility of losing your money as well as that of your investors, resulting in long term indebtedness.
   • Obstacles: The many barriers and problems you have to surmount in order to start your business and keep it going, e.g., raising money, finding good help, discouragement from family and friends
   • Financial Insecurity: Lack of a steady income or money to pay bills until the business is well established. This could take five to seven years in some cases.
   • Long Hours: 70 - 80 hour weeks when starting the business
   • Stress: Long hours lead to hard work, creating stressful situations for the owner/entrepreneur and the family
   • Loneliness: It can be both lonely and scary when one person is the only one responsible for the success or failure of the business. In many cases the entrepreneur may also be away from home for extended periods of time, traveling to promote the product(s) or service.

6. Using Visual 2-4: Evaluating the Self-Assessment Questionnaire, discuss the results of student Self-Assessment Test. Ask each student to analyze individual strengths and weaknesses as potential entrepreneurs.

Closure

Ask students which of the above characteristics they observed in the business owners they interviewed in Lesson 1.

Extension Activity

Have students complete Activity 2-C: Self Portrait of an Entrepreneur. Students may only use drawings to illustrate their strengths and weaknesses; they may not use words. For example, a student might use a light bulb to represent innovation.